Small Users Can Still Pay Higher VAT Rate & CCL

150 150 David

While domestic customers only pay 5% VAT on fuel and no Climate Change Levi, Business customers pay 20% and an element for CCL.

Small business users, however, are treated like domestic customers as are supplies for non-business use.

Yet some small businesses still end up paying the full rate if they happen to use an average of 145kwh of gas or 33kwh electricity over a billing period. This often happens to small businesses using most of their consumption during winter for heating or hot summer for air conditioning.

Looking at the whole of annual consumption would certainly be a fairer system.